Comment on Code your Technical Analysis strategy

Nithin Kamath commented on 07 Aug 2013, 04:12 AM

Chella,

Markets are pretty tricky and your strategy is something which is very important.

What I’d advise is that you were correct in knowing that intermediate trend is down and you buying nifty was putting up a counter trend trade.

The best way to put a counter trade is to reduce your trading size significantly from your normal size or put a very strict stop loss. I guess you probably didn’t do both of that. Check this Blog , he mainly does counter trend but uses options that too out of the money with only a small capital. This works for him, you need to find what works for you. But you need to remember what I mentioned above, the biggest problem with traders is that we are all inclined to take trades assuming that just because it has come down it will go up or vice versa.

best of luck

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